Ann Arbor home sales are up, prices are down

As we look back on the first 2 months of 2009, the Washtenaw County real estate market saw a trend of increased homes sales at much lower prices.  When comparing the first 2 months of 2009 to 2008, Ann Arbor area home sales have gone up 11.57 percent, while the average sales price has dropped 22.2%, and the average price/SF has decreased 20.1%.  These figures reflect the average of the 9 school districts in Washtenaw County.  The more important information is – how is my area doing?

The chart below shows the residential real estate market in each Washtenaw County school district, and you will notice large discrepancies in the different districts. The decrease in the average sales price ranges from a high of 40.2% in the Ypsilanti real estate market, to a low of 4.2% in Ann Arbor.  The decrease in the price/SF ranges from a high of 32.7% in Ypsilanti to a low of 4.5% in the Milan real estate market. The increase in the number of sales ranges from a high of 81.48% in Willow Run to a low of -40.74% for Dexter real estate.

What these real estate trends are showing us is that Ann Arbor area homes are selling, however they have to be priced correctly.  This can really be seen in Ypsilanti where sales were up 76.92%, however, prices were down 27.5%. This is very clear evidence that the foreclosure sales and short sales are putting a damper on prices, however they are offering an excellent opportunity for home buyers and investors.  With prices down as much as 40% and interest rates at historical lows, this is probably one of the greatest times in history to purchase real estate.   Even if Ann Arbor property values continue to drop a little, remember that a 1% increase in interest rates, decreases your home buying power by 10%.

The final statistic to watch is listing inventory.  The inventory of homes available for sale in the Ann Arbor real estate market are decidedly down from last year. In Ann Arbor and Saline, inventory is down 22%. In Ypsilanti inventory is down 37% and in Lincoln schools, inventory is down 25%.

The window of opportunity is right now

Putting all of this together, the three indicators that you should pay attention to are all pointing to the fact that this is probably the best time to buy a home in history.  Prices are down, interest rates are at historical lows, and inventory is decreasing. Don’t let this window of opportunity to pass you by.

Take advantage of this buyer’s market now! Contact The Bouma Group today for your free guide to buying a home, whether it be a short sale, foreclosure or condominium purchase!